Look carefully at this person This person used to work as a peon in a wooden warehouse and was so poor. He also lived with his family in the same warehouse, look at the wonder of entrepreneurship He set up a company with annual sales exceeding ₹10,000 crores.
Balwant Rai Parekh: केसे इस आदमी ने खड़ी कर दी करोड़ों की कंपनी Cash Study Of Fevicol
He sells goods worth ₹29 crore every day Sells goods worth ₹1 crore every hour. His company’s valuation is ₹1,28,000 crore. His personal valuation is ₹90,000 crore. He has a one-sided monopoly in the market He has captured 70% of the market and he himself not only became rich. However, made many people rich If you had invested ₹1 lakh in his company 25 years ago in 1998, then today its net worth is ₹4 crore.
The name of this person is Balwant Rai Parekh and the company he established, its name is “Pidilite Industry”. This company makes Fevicol and its work is to stick. Everything sticks Sticks paper, furniture, Either it is cement and tile work or Waterproofing work on the roof. It sticks everything In today’s date, do any work of sticking. The money will go into Pidilite’s pocket Just like we call paste as Colgate, ‘give us the Colgate’ and call water as Bisleri, Similarly, whatever the work of sticking.
We remember Fevicol Hence, in today’s case study. We will learn how a peon has created such a huge empire. Even MBAs from big companies learn from his case studies. There are such lessons in his story i.e., product, packaging, marketing and finance. That big MBA and CA will be embarrassed This case study must be Read by every businessman, Anyone who is doing business or wants to do it or every student who has a desire to do business Should Read.
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History of Fevicol Pidilite (case study)
Let’s start the story from the beginning, First of all let’s come to the product, How the idea of the product came? I always say that brother, look You do not need to go searching for a product or service. Find the problem around you and whatever problem is solved and your business is ready. So, Balwant Rai Ji also did the same. Balwant Rai Ji worked as a peon at a wood merchant As it was a furniture work.
Apart from that, there was another tension. It is being made with so much hard work and yet it is not durable After two, three or four years of work. Complaints started coming Like brother, this has been removed, this has been removed! That time, Balwant Ji said, It would be great if we find a solution for this. He did research on his level and made things.He found a product that can be used to make a material from synthetic resin.
Which can be applied directly, There is no tension of heating or boiling and it is 10 times stronger than animal fat. Now, he made this thing and after making it, He told the carpenters to apply this The carpenters said it is sticking quickly and it is very strong. time is also being saved, There is no smell and rot. It was great and when they got the motivation I have got a product in my hands which has a huge demand.
So, he started his own company in 1959 Named as “Parekh Dyechem”. This is Parekh Dyechem Later, it became Parek Dichem Lite And then it became PIDILITE and the product that was launched for the first time. What was its name? “Fevicol” .
Surrounding And Distribution
Lesson No. 1 – “Find your surrounding problems” The business will be established and secondly, your product should be awesome It should be better in comparison to the current product. Now, the first thing is, that the product has been made, ‘Very wonderful, Vert Great’.
However, what happens just by making a product? There are many such traders who are sitting with a wonderful product Unless it is sold. then what is the meaning? So, they asked how to do its distribution? So, in the past, what was the simple way of distribution? As your product is there, So, first make the product and then give it to the wholesaler. The wholesaler will give it to the distributor The distributor will give it to the shopkeeper and the customer will take it from the shopkeeper.
There will be a margin in the entire chain; There is no problem. However, Balwant Rai Ji said, First of all, listen that our margin is less and If the entire chain got eaten up in between, then? and secondly, they said that this works in B2C product. Where the customer comes directly and asks for the thing Now, they said that the customer is asking for a furniture Like, you want a sofa Now, what gum is being used on the sofa It doesn’t matter to him. Secondly, assume that you are making a sofa, You will bring the wood, You will bring the gum Then, you tell the carpenter.
Brother, tell me what to bring and what the carpenter says, we write down and bring the goods So, he said that whether the customer’s money is being used, The decision of which type of Gum will be used is made by the carpenter. So, I am not going in this model I will not go to the distributor or the wholesaler I will go straight to the carpenter. So, after making his product, filling it in the bottles, After explaining it to each carpenter, he used to sell it directly And this was the best decision of his life.
He didn’t get into this whole process Now, if you are a regular follower of this Followers and follow it on a daily basis, Then two other people had done this kind of thing, I have already made a Blog on that. Tell me which ones they are? I will give you a hint. Leave it, I will tell you Astral had done the same thing with the plumber . Astral Pipes told the plumber to come with him Asian Paints had done the same thing with the painters. They had gone directly to the painters They had skipped the channel.
Real Buyer and Fevicol Champion’s Club
Lesson No. 2 – “Understand Who the Real Buyer Is” Understand the influencer Anyone who gives money is not only a customer. Who influences that decision? For example, in all the items for the children, Father’s money is being invested in them But it is the children. who have the say in making those decisions So, the main attention should be given to the children in that. So, you see who is making the decisions in the product or service you are selling.
Now, let’s come to Marketing Phase 1 How did they do marketing in the beginning? They came to know one thing who is our God ‘Carpenter’ They do all the work. They created FCC What is this? – ‘Fevicol Champions Club’ What did they do in this? They used to invite all the carpenters Like, brother, come today, We will give you the training, Will give you new tools We will give you wood, Will teach you to make designs Develop many of your skills. Used to organize Kite Festivals, Used to take you on pilgrimages Used to have tea and snacks Used to welcome like a wedding procession.
Then you tell – Sir Ji, What is their benefit of doing all this? First of all, those who get such a warm welcome like a wedding procession Those who see these new designs and learn new things, Then they say, brother, who did this to us? “Fevicol” So, when we go to the market and buy something, We buy Fevicol products Secondly, they used to use these gatherings in the launch of a new product Like, we have launched a new product So, look at the launch of this new product See how it works?
Tell us what is your feedback on it and they used to take new market insights from them Like, tell us what is going on in the market these days? What is the demand for which item? So, there is a lot of gathering involved in developing a new product, testing it and launching it For example, In the gathering, someone said, Sir Ji, where we make a furniture product and if water comes there, Then, it creates many problems.
The product does not last long Ohh! This happens (By PIDILITE) They made Fevicol Marine and if they said like, that we make the furniture, and it gets spoiled in sunlight So, they (Pidilite) said ok, They made Fevicol Heatx Now they said, Sir Ji, – As there are big projects, It takes time to do this slowly They made Speedx Hence, as soon as they took the feedback, Like this is a gap in the market, They researched and launched a new product.
They get it tested by them only and also spread it in the market through them and like this, based on such feedback They launched many products for tiles, marble, ceiling and in today’s FCC, there are 380 such small clubs and A total of 40,000 carpenters are directly associated with Fevicol.
Brand Interrogation
So, Fevicol said that they will develop the product as per the needs of people And this is the rule of the market, If you work according to the market Then you will get a lot of money, Whether it is business or job, So, I have already told the business individuals, Will tell further Now, if any person is doing a job or wants to do it.
Whether he is experienced or fresher If he does the job according to today’s market Then, he will get a good package If you continue to study in the old ways, You will don’t get it So, what is going on in the market today? One thing is going on in the market, Whether the business is small or big, “Data” Every person needs to analyze the data.
Whether it is a small company, whether it has to manage the stock Whether it is to understand its profit, Whether to understand the product or do marketing Or whether there is a rating agency or political agency Everyone needs a data analyst .
Boosting Consumer’s Well-Being
Lesson No. 3 – “Boosting Consumer’s Well-Being” You help your consumer increase their knowledge and income while also having fun You will start enjoying it automatically They said that our carpenter is God If the carpenter will be happy, the Carpenter will earn If the carpenter will be happy, Our brand will do great, will be great Product.
Done, Distribution Done, Marketing Phase -1 Done What happened now? Expansion Now, they have done one thing like how much will they sell Fevicol, How much? Till now, Fevvicol is being used only in furniture There is over-dependence on it If there is so much dependency on one person, Then that is also bad. What to do?
They said, – Let’s go to different areas So they said that if we work in different areas and make new products, It takes a lot of time First, take feedback, then do research on a new product Then it will fail two or three times and become a thing, Then, make it deployed So they said, how will growth happen like this?
So, this growth, i.e. the first one, like think new and make it from zero It is called organic growth They said that we should not do organic growth We will do in-organic growth Means? Let’s buy already established brand For example, M-Seal belonged to Mahindra & Mahindra They bought that brand Now, M-Seal had already captured 60% of the sealing market and reigned as the king They first bought it Then.
they mentioned a product designed for sticking tiles and marbles called Roff They bought it Then, in the steel industry, there was a product called Steelgrip, They purchased it too In today’s date, Pidilite has more than 20 different brands In which, there are only a few made by them Mostly, they are brands that have been purchased And what is the benefit of buying them?
The first thing is having multiple products Dependency has been removed from Fevicol The second thing – As they have gone to every sector and the customer is only one Now, there is only one customer and if he asks for anything, Like, if you want to stick anything, For instance, if you want some work to be done on the roof, Take the “allfix”.
It is ours Do you want to stick the tiles? Take the “Roff”, It is ours If you want to paste anything, there is only one synonym for it “Fevicol” What is the other benefit? Look inside, they have not allowed the competition to flourish Competition; somewhere it kept its feet, somewhere it put its hands.
They said that they will now allow it to come nearby” Fevicol is the king in its category and all others are the kings of their own category They do not allow a new man to be born On the 70% market; They are only the king in the market And in the remaining 30%, everyone is eating collectively Fevicol is only enjoying its 70% market By following these strategies only.
Expand Product Portfolio
Lesson No. 4 – “Expand the product portfolio within the domain” Like, when you have a customer who buys goods from you and trusts you, You sell one product to him Now, he is using four things And so, why are you sending him somewhere else for the remaining three?
Start selling those three as well Only if it belongs to your domain I am not telling the man who is selling clothes to start selling shoes as well However, Yes, if you are selling clothes for the men’s, and if you feel that the belt will also be sold out, and yes, if the deodorant will also be sold out, Then, sell it too The first decision of distribution was as a masterstroke They played one more masterstroke.
They said that Fevicol sells the best However, who takes it? Carpenter and how they take it? Boxes of 5kg, 10kg and 1kg Well, smaller people tend to stay away from us and, this is a B2B market We didn’t come in the B2C market.
So, they said listen, we already have boxes of 5 kg and 10 kg We will also make something worth ₹5 and ₹10 So, they also made Fevi Stik, and they also made Fevi Kwik They said that when a small child is doing a school project, Then, he should use my product Because when the same child grows up.
Then he will use my second product and when it grows bigger, He will use my third product of Fevicol Overall, they have made their product an OTC product OTC means over-the-counter product Which is sold directly at a shop like Fevicol You will get any item of Fevicol such as Fevi Kwik in the general store Will get Fevi Stik, You will get them at the stationary shop.
Innovation in Packaging
So, they have reached every street corner There comes lesson number no. 5 – “Packaging Innovation” You have the same goods, However, if you put different packets. Then, different price points will also be covered For example, there is an example of ‘Chik’ The world says that we will only sell 1-litre shampoo bottles. However, the Chik said we have bottles of 1-litre also 1/2-liter bottles and 100ml as well.
And, we have also available in the pouch worth ₹2 So, as soon they make it ₹2, that target audience is also covered So, your product is the same, but if you differentiate the packaging, You will be able to catch many TG (Target Audience) .
B2C Marketing
Now, let’s talk about marketing again That was a phase – 1 of the marketing Where carpenters were involved (caught) Now marketing has come from B2C They wanted to reach the masses Hence, they started TV commercials and what were the TV commercials?
Even today, if you sit and Read the ads of Fevicol You will keep Read ing and smile Those ads hit the heart directly. Why? They kept in mind 2-3 things First of all, they did not take celebrities Like, we do not take celebrities, we will take the common man And many times, in their ads, they included their own carpenters.
So that they looked like real people and used real locations It was not like that i.e., a beautiful house or a nice ad No, that is the same place as the carpenter Some old places; there is wood and dirt lying there.
There is sunshine, a common man is standing, his hair is scattered, A man who can connect with the heart Yes, this is my story This is how it happens They developed the relatability They didn’t use the celebrities Second thing, they made us laugh in the ads Connect with the emotions and, various great taglines [Advertisement].
So, the marketing was done in such a way Like we say for the paste i.e., Brother, Give us the Colgate, For water, we say, brother, give us the Bisleri Just like that, Nowadays, the world asks for gum, brother, Give us the Fevicol Their marketing brilliance is also visible in their logo What is their logo?
Two elephants are pulling something in opposite directions It is a piece of wood which is tied with the Fevicol Well, in the beginning, when Fevicol was sold The name Fecal was not remembered So in the beginning, the carpenter used to say, ‘Woh Hathi Wala Dena, Hathi Wala’ So, due to this ‘Haathi Wala’, They got the brand recall done very well.
Always remember your user
Lesson No. 6 – “Always remember your user” There is no point in showing glitter or celebrities Like, it increases the numbers There is no increase in the numbers Make whatever connects your users.
Supply chain Management
Lesson No. 7 – “Strategic Supply Chain Management” Take care of your supply chain as well And if you once get successful.
One more important thing in the business has been left out If an individual operates such a big business, It is very important for his supply chain to be strong Supply chain means you are selling, Tell me what you are making from? Our sales have increased from 100 crores to 200 crores.
However, from whom we buy the goods, They are not able to deliver that They are not giving the quality that we want And we want to give good products to the market However, if the quality that we are getting is inadequate, Then what will we do then?
Hence, such companies which operate on such big levels, It also manages its own supply chain So, they did backward integration The people from whom they used to buy the goods said That they didn’t know what to sell and what to make So, they acquired the plant itself Like, they are acquiring brands in the front They also acquired suppliers from behind Like, it’s okay. We will make it by ourselves.
So, they are making their own raw material that is being used So that they do not face any problem Meanwhile, on a global level, They have more than eight large manufacturing plants And have more than 30 subsidiaries which Sell goods in countries like the US and Singapore And have more than 500 products which are exported to more than 70 countries.
Due to all these things, Their dominance in the market Like Fevicol does not give credit The biggest problem faced by the businessman is that Like, need to give credit, give credit Individuals who came in their competition said that Like Fevicol does not give a loan.
we will give you the loan The carpenter refused to take the loan They said, brother, listen, How much will the raw materials/products cost? Suppose, if we are making a chair, The chair will be made for ₹10, 000 It costs around 150-200 rupees for that gum And if you give ₹200 worth item in ₹150, Gives a break of 10 days, What difference will it make to us?
If your product turns out to be faulty, Then my chair worth ₹10,000 will be damaged So, I am not looking at ₹50-60 If I buy it, I will only buy Fevicol If some other person comes and tells them, You should not buy Fevicol Make it from our product only Then.
the carpenter says, I’ll build it, but there’s no responsibility I will take responsibility only when Fevicol comes into use This is a trust Because of this, it is sold expensive and does not even give a credit.
Conclusion
Pay attention towards global expansion So, this was a complete case study in which We talked about its product, talked about marketing, Talked about expansion, talked about its strategies There are many more products like this And there are many such case studies Which are waiting to come out And we will bring it out However, subscribe to the channel Otherwise, you will be left out And, yes, Don’t forget to check the coding invader link in the description
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